Yes, the GOP raising taxes. I have problems with that from both an economics level and from a moral level. First the Moral Level, the GOP should never be for raising taxes, period. But, they just love big government like the Democrats.
“The billions of dollars in lost sales tax is revenue badly needed by cash-strapped state and local governments to pay the salaries of essential workers such as police officers, firefighters, ambulance crews, and schoolteachers,” the NRF states.
Ummm….BULL! Cut spending! Failing that, try to raise taxes on the citizens in the state or local government. GO ahead, put THAT to a vote with your names on it state and local coward politicians.
Now for the economic reason against this tax:
The National Retail Federation (NRF) claims that states could collect an additional $25 billion in sales taxes annually if the legislation is passed, and argues that imposing the tax would help to promote business at traditional stores, create jobs, and provide tax revenue.
On-line purchases are already taxed at the same or higher level than those bought at a brick and mortar store. Here is how that works: A product is purchased by a person in PA from an on-line merchant in, let’s say, KY. (I just got an amazon package from Lexington so I will use that as an example). This retailer has a huge brick and mortar warehouse in KY that pays taxes on wages, energy, telecom/data, property, et cetera. Fine and dandy for KY but what about PA? They want taxes too.
Well, since this package is not part the tractor trailer load going from Walmart-distro to Walmart store, it is handled far more often by more people and creates taxes at a higher level. First, the package and goods are loaded into a box at Amazon, that act is taxed on the existence of the brick and mortar warehouse and workers involved. Then, it is handed off to a FedEx line haul driver in an 18-wheeler (gas/wage/tire/vehicle taxed) who drives it to the Hub in Louisville.
The Hub is enormous and generates a ton of tax revenue for KY/local. There the package is sorted and it goes to Columbus OH Hub where it is taxed en-route by deisel/truck/tire/wage taxes of the line-haul driver and his big rig. The sort Hub in Columbus generates a ton of tax revenue as well.
It then goes to PA, to the mini-hub in Pittsburgh where it is taxed again through wages/energy/ et cetera of the sort workers who place it on a delivery truck in that brick and mortar building. There it raises more tax revenue through gas/wages/vehicle et cetera taxes to get to my door. The delivery driver works and is paid to deliver, he then spends his money and is taxed on that. Without on-line sales his job does not exist. Without on-line sales, that mini-Hub has far fewer employees and PA/local gets far less tax money, so does everyone else down the line. When taxes are raised, the taxed action is penalized and occurs less often.
So, the jobs that the NRF and GOP want are part time retail jobs instead of full time transportation careers. That line-haul guy makes well over 50k a year not counting benefits, The mangers and support staff make pretty good coin too. The package-handlers range from 14-24 an hour and at UPS they get a great benefit package. A couple more clerks at Walmart gets you what in tax revenue?
Again the GOP tries to strangle the middle class. See, the thing is, they can’t send the transport jobs over to China….I suppose they could offer H1B visas to Pakistani taxi drivers to do line haul and package delivery….